News updates February 3, 2022
1. Bitcoin Slides Below $38K, Support Is Above $35K
Bitcoin (BTC) failed to sustain a bounce above $38,000 Wednesday, although short-term buyers could remain active above the $35,000 support level. Momentum is starting to fade on intraday charts, which means the pullback could continue into the trading day in Asia.
BTC was trading at about $37,400 at press time and is down 3% over the past 24 hours.
2. Woori Bank to Accept Blockchain-based Driving Permits as Form of Authentication
The South Korean financial giant Woori Bank has become the first commercial bank in the nation to start accepting blockchain-powered driver’s licenses as an official form of authentication.
Blockchain-powered driving permits were first unveiled in 2019 under the auspices of the Ministry of Science and ICT and the nation’s police force. All three of South Korea’s biggest mobile carriers (SK, KT, and LG U+) operate apps that store digitized versions of the conventional card-type driver’s licenses on users’ mobile phones.
The police then embraced the move with greater gusto in 2020, by which point around a million users had been issued with digital permits.
The permits make use of blockchain-based Distributed Identity Identification (DID) technology.
The media outlet White Paper reported that Woori’s move has been endorsed by the Ministry of Public Administration and Security, which is currently implementing the government’s so-called Digital New Deal project.
3. More than 10% of global working-age internet users own crypto
The findings of a broad global survey of internet users aged 16-64 revealed cryptocurrencies are more than just “catching on.”
DataReportal recently released its flagship global overview report–revealing that more than one in 10 working-age internet users owns some form of cryptocurrency.
The global digital insight provider analyzed major trends related to people’s online behavior, and for the report’s crypto segment relied on GWI’s data, which broke down crypto ownership rates per country and demographics.
Thailand leads in crypto adoption. According to the crypto segment of the report, which relied on a GWI survey carried out in Q3 2021, the number of people who own crypto globally grew by more than a third (37.8%) in the year-to-year period.
GWI data revealed that more than 10% of working-age internet users now own some form of cryptocurrency, but by zooming in to individual countries, it becomes obvious that the asset class became especially popular across developing economies.
4. UK Tax Regulator Updates Guidance on Staking and DeFi Lending
How proceeds from lending or staking are taxed depends on the nature of the returns, which could be hard to determine, UK's tax agency says.
Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax agency, has updated its guidance on the taxation of returns from decentralized finance (DeFi) lending and staking in proof-of-stake networks.
According to the new guidance, published Wednesday, how a return from lending or staking is taxed depends on whether it is considered capital or revenue. But deciding if a return is capital or revenue is complicated, as the HMRC itself admits.
5. Don’t Count on Buying Bitcoin at $30,000, Says Crypto Analyst Justin Bennett – Here’s Why
Closely followed crypto analyst Justin Bennett says that bargain-hunters hoping to get Bitcoin at $30,000 will likely end up disappointed.
Bennett tells his 97,000 Twitter followers that many people who watch his YouTube strategy sessions are saying that a $30,000 Bitcoin is imminent, but he doubts traders will get BTC that cheap.
“Every other comment on my YouTube channel is someone waiting/wishing for $30k $BTC.
It would be the first time in a long time that retail gets exactly what they want.
I think a move higher from $35k-$36k is more likely.”
The Daily Hodl
Don’t Count on Buying Bitcoin at $30,000, Says Crypto Analyst Justin Bennett – Here’s Why
Daily Hodl Staff February 2, 2022
Closely followed crypto analyst Justin Bennett says that bargain-hunters hoping to get Bitcoin at $30,000 will likely end up disappointed.
Bennett tells his 97,000 Twitter followers that many people who watch his YouTube strategy sessions are saying that a $30,000 Bitcoin is imminent, but he doubts traders will get BTC that cheap.
“Every other comment on my YouTube channel is someone waiting/wishing for $30k $BTC.
It would be the first time in a long time that retail gets exactly what they want.
I think a move higher from $35k-$36k is more likely.”
The analyst says that the dollar index (DXY), which compares the USD to a basket of other fiat currencies, is playing a big role in the crypto markets. Usually, a strengthening DXY can signal weakness in many assets, while a struggling DXY often suggests higher prices.
According to Bennett, crypto traders may want to keep an eye on a trend reversal playing out in the DXY to signal a new bull run in the digital asset markets.
“DXY is still coming off. 95.50 is probably next.
A close below 94.60 is required to reverse the trend.”
6. South Africa’s financial regulator warns crypto traders against using the FTX exchange.
South Africa’s financial regulator said traders should be “cautious and vigilant” when using FTX Trading Ltd., one of the world’s fastest-growing crypto exchanges. On Wednesday, the Financial Sector Conduct Authority issued two notices warning against dealing with Bahamas-headquartered FTX and Seychelles-based ByBit. It said the companies are not authorized to give financial advice or intermediary services in South Africa.
